Repeal of So-Called Cadillac Tax

Washington, D.C. (April 28, 2015) – Terry O’Sullivan, General President of LIUNA – the Laborers’ International Union of North America – made the following statement today on the bill introduced by Reps. Joe Courtney (D-Conn.), Donald Norcross (D-N.J.) and Dina Titus (D-Nev.), and more than 60 original co-sponsors to repeal the 40 percent excise tax (also known as the “Cadillac tax”) in the Affordable Care Act:

Repealing the so-called Cadillac tax would fix a major flaw in the Affordable Care Act and prevent millions of Americans from facing cuts in their healthcare coverage. The tax, which was promoted as a way to rein in supposed excessive healthcare benefits for highly-paid executives, is expected to instead hit healthcare plans covering hundreds of thousands of hard working men and women, including LIUNA members, as insurance costs escalate faster than the thresholds.

The so-called “Cadillac Tax” is particularly unfair to LIUNA members and those who rely on multi-employer healthcare plans for their health coverage. These plans will be forced to slash benefits in order to avoid the tax. The tax would take money out of the pockets of workers and their employers in order to subsidize low-road employers who have shirked their responsibilities.

Healthcare reform was supposed to improve and increase coverage. This tax has the opposite effect. LIUNA urges Members of Congress to join Representative Courtney in supporting a repeal of this harmful tax.

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The half-million members of LIUNA – the Laborers’ International Union of North America – are on the forefront of the construction industry, a powerhouse of workers who are proud to build America.